Showing posts from October, 2011

Media Prima: In early talks with Puncak Semangat

Media Prima Bhd is in preliminary talks with privately-held Puncak Semangat Sdn Bhd, which is looking at converting all analog televisions (TVs) into the digital ones by 2015. Puncak Semangat, owned by tycoon Tan Sri Syed Mokhtar Al-Bukhary, has been bidding for the conversion job from the government for the last 3 years. "We cannot comment much on that. It's still in preliminary talks. Actually what I am doing here is evading your question," Media Prima COO for television networks Ahmad Izham Omar  said at a press conference after announcing the content line-up for four of its TV stations for next year. The conversion of all analog TVs to digital is expected to cost about RM2bn, a study done in 2000 revealed. The government is expected to announce the winner next  year, but industry sources said the government has more or less confirmed that the tycoon has got the job. (Business Times) Read Media Prima Technical View at: Media Prima Technical Chart

CapitaMalls Malaysia Trust - Private placement

CMMT will be raising RM330m via the private placement of 261.9m new units at issue price of RM1.26. The quantum of equity fund raised exceeded our expectation as it implies that East Coast Mall will be 100% funded by equity which will result in larger than expected EPU dilution. FY11-13 earnings will be cut by between 3.6% and 7.5%. On the flipside, gearing will be lowered which allows more flexibility for

CMMT to pursue further acquisitions. Maintain BUY as we continue to like CMMT for its exposure to retail investment properties which we believe is resilient. Read more details at here: CapitaMalls

MBM Resources: To take over Hirotako

MBM Resources Bhd has made a takeover offer for Hirotako Holdings Bhd offering 97 sen per share, which is 9 sen above the pre-suspension price of 88 sen. Hirotako said on 27 October it had received a notice of conditional take-over offer from AmInvestment Bank Bhd on behalf of MBM Resources. MBM Resources was offering 97 sen per share for all the voting shares of 25 sen each in Hirotako and 5.0 sen per warrant. “The  board of directors of Hirotako will hold a meeting tomorrow to deliberate on the offer,” it said. MBM Resources said it had obtained an irrevocable undertaking from Hiro-Dapat Holdings Sdn Bhd -- the largest shareholder with 39.948m shares or 22.85% -- to accept the offer. Hiro-Dapat is controlled by Hirotako group MD Datuk Kuan Peng Ching @ Kuan Peng Soon. MBM Resources said it did not intend to maintain Hirotako’s listing status. (Financial Daily) Read analysis on this at: MBM Resources Analysis

Buy Axis REIT shares?

Axis Real Estate Investment Trust (REIT) is expected to issue sukuk bonds worth RM300 million in the near-term to refinance its short-term debt, extend its debt expiry profile and lock in lower interest rate.

As at Sept 30, Axis REIT short-term debt stood at RM340 million, with RM198 million due this year.

However, it is likely REIT may draw down a portion first, given the revolving credit due to the maturity in 2011, and planned unit placement, HwangDBS Vickers Research said in a statement today.

"At 38.2 per cent gearing (Sept 30) based on total asset value, the company could still take on around RM151.1 million in debt before hitting the 50 per cent threshold.
"This is unlikely as impending capital management exercises should supplement its existing funding for asset acquisition purposes and bring it to a more comfortable low around 30 per cent level," it said.

The research firm maintained its "buy" call on the REIT and reduced the target pri…

Parkson Holdings: Prices set for IPO, but size smaller

Parkson Holdings Bhd has priced its regional retail arm Parkson Retail Asia Pte Ltd (PRA) at an IPO price of S$0.94 (RM2.33) per share. The IPO valued the whole of PRA at S$636.7m, which is a decent 18.2 times its net profit S$35m for FY11 ended June 30. However, the size of the IPO that will comprise the issuance of 80m new shares is smaller than previously anticipated. In a statement to Bursa Malaysia, Parkson Holdings said PRA’s listing on the Singapore Exchange (SGX) will involve an offering of 147m shares – 80m new shares to be issued by PRA and 67m existing shares by the vendors Parkson Holdings and its Indonesian partner PT Mitra Samaya. by Financial Daily Read The Analysis Here: Parkson Holding Financial Analysis

Parkson Listing PRA

Parkson BUY RM5.55 KLCI : 1,470.93 Price Target : 12-Month RM 6.55 (Prev RM 7.45)
Reason for Report : Listing of PRA
DBSV vs Consensus: Our estimates are below consensus as we believe consensus has not factored in 32.4% MI arising from PRA listing 
PRA’s new pricing benchmark 
•  PRA listing at FY12F PE of 13x
•  5% earnings dilution to PHB
•  Twin exposure to rising consumption growth story; maintain Buy with new TP of RM6.55

PRA’s IPO price set at S$0.94. Parkson Retail Asia Limited (PRA) is slated for listing on the Main Board of Singapore Exchange (SGX) on 3 Nov 2011. The IPO exercise will involve a total offering of 147m PRA shares comprising 80m new shares and 67m vendor shares (with an option to add 22m vendor shares for over-allotment purpose) from Parkson Holdings (PHB) and PT Mitra Samaya (MS) at S$0.94 per share. This will raise S$138m, which is lower than the initially speculated S$300m-500m possibly due to the prevailing market uncertainties. The IPO pr…

Malaysia Macroview: From de-risking to looking for trading opportunities

Global de-risking saw emerging markets being sold down heavily in the month of September, especially after a downbeat statement by the US Federal Reserve which painted a rather bleak outlook on the US economy, and the spread of Eurozone sovereign debt concerns into the banking sector. This was exacerbated by talks of a split in Eurozone over terms of Greece’s second bailout and sparking fears of some nations leaving the EU bloc. But sentiment has since improved with growing optimism that European leaders were making progress in tackling the region’s debt problems. Equity markets, having discounted a global slowdown to some extent, and with no signs of deterioration of the situation in Europe, have staged a rebound as investors
look for trading opportunities in addition to some short coverings by hedge funds. Investor sentiment has improved
  Previously, investor sentiment was at “panic” levels, due to concerns of Eurozone sovereign debt spreading to the banking sector and the …